Frederik Balfour and Brian Bremner: Too Many Factories?

…Even as China’s leadership breathes a sigh of relief, the outsize profits of recent years appear to be history, given all the new plants being built. Gluts are emerging in steel, cement, autos, chips, and petrochemicals, dimming the outlook for earnings. In the first four months of 2004, profits at China’s industrial companies surged by 46%. During the same period this year, they grew by a more modest 15.6%, according to China’s National Bureau of Statistics.